Bangladesh Bank Governor Dr. Ahsan H. Mansur has said on Sunday that the merger of five private Islamic banks is now at its final stage. No employees, however, will lose their jobs as a result of the move.
Speaking at a press briefing held at the Bangladesh Bank boardroom, Dr. Mansur said the decision to merge the banks is part of a broader reform strategy aimed at stabilizing the country’s financial sector, and is not linked to the upcoming national elections. “This is a continuous regulatory process. We hope the next government will carry it forward. However, we won’t wait—the merger will be completed in the next few months,” he said.
The banks involved in the planned consolidation are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank.
Reassuring bank employees, the governor said, “No one will lose their job due to this merger. Branches may be reorganized if needed, particularly in urban areas with excessive branch concentration. Some may be relocated to rural areas to improve banking access.”
On the issue of repatriating laundered funds, Dr. Mansur said that the process is complex and requires court verdicts. “Recovery of such assets involves a step-by-step legal process and concrete data. Without a final court order, it’s not possible,” he stated.
He further added that Bangladesh Bank is prepared to pursue both legal and out-of-court avenues.
“Alternative Dispute Resolution (ADR) is also an option. If both parties agree, funds can be repatriated through mutual understanding. In such cases, legal teams from both sides will negotiate. Bangladesh Bank will follow the government’s guidance—whether through the courts or ADR,” he said.
Preparations are already underway to initiate legal proceedings in local courts for domestic recoveries and in relevant jurisdictions abroad for international cases, he confirmed.
The merger is seen as a crucial step to improve governance and efficiency in the Islamic banking sector, parts of which have been under pressure due to financial irregularities and rising non-performing loans.
HKJ
